| 1. |
- Heyman, Axel, 1985, et al.
(författare)
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House prices and relative location
- 2019
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Ingår i: Cities. - : Elsevier BV. - 0264-2751. ; 95
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Tidskriftsartikel (refereegranskat)abstract
- Location is known to be a main determinant in people's efforts to estimate the value of a house. However, the type of location, and subsequently how the value of that location is estimated, has not been investigated to the same degree. In hedonic price modelling, a well-used method of estimating housing as a composite good, locational proxies such as postcodes or census tracts are often used to control for location. This notion of location is what geographers refer to as absolute location, a fixed position in space, as opposed to relative location, a position in space relative to other positions. In this paper, we look at the difference in explanatory power of absolute versus relative location in a hedonic model for apartment sales, using the city of Oslo as our case. The main finding is that the added explanatory power of postcode dummies significantly diminishes when introducing relative location explanatory variables such as walking distance to key places like the metro and parks. As house prices correlate with consumer preferences, these findings will have implications for urban planning insofar as different neighborhood designs vary with respect to their ability to harvest relative location potentials.
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| 2. |
- Marcus, Lars, 1962, et al.
(författare)
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Empirical support for a theory of spatial capital: Housing prices in Oslo and land values in Gothenburg
- 2019
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Ingår i: 12th International Space Syntax Symposium, SSS 2019.
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Konferensbidrag (refereegranskat)abstract
- Land is, besides labour and capital, one of the classic production factors in economic theory. However, neoclassical economics dominating the 20thcentury, simplified production theory to only labour and capital, treating land either as just another form of capital or as the natural resources it harbours. This hides the central role of land – in the meaning of spatial extension and location – for contemporary economies, where land rent is an essential cost and location a productive factor for most economic activities, not least since these increasingly are located in cities. Critical here is the confusion often found concerning property values and the distinction between land and improvements, the latter most often constituted by buildings, where buildings quite naturally can be treated as capital, while land cannot. Importantly, while property value can be increased by its owner through improvements, such as new buildings, she is very limited in influencing the land value, since this is a collective variable dependent on the economic development of the city as a whole. It is here proposed that improvements on land in contemporary urbanised economies to a dominant degree concern systems of centrality and accessibility generating relative locations, that are further enhanced by buildings and land division, and that this constitutes what is proposed to be called a spatial capital, which to a large degree is created through the practices of urban planning and design. In this paper we investigate the dependency of spatial form on land value. First, we review how spatial form and the configurations of accessibility it generates on land, influences housing prices to find support for the intimate relationship between relative location and monetary market values. Second, we investigate the dominance of land values compared to improvement values in four Swedish cities of different size Third, we investigate how known parameters of spatial form correlates with land values in Gothenburg, Sweden. We see close associations between spatial form and land values, both in shape of market housing prices and as property taxation values. Land value holds a larger share of total property taxation value in larger cities, suggesting that relative location is valued higher where economic activity is greater. Furthermore, we find clear correlations between spatial form and land taxation values. Altogether, these findings indicate that spatial capital encompasses monetary value. In extension, these findings also indicate how knowledge based and skilful urban planning and design can create measurable value.
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